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Business News/ Money / Personal Finance/  Sovereign Gold Bond Scheme 2023-24: New series ends today. Top 5 reasons to apply?
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Sovereign Gold Bond Scheme 2023-24: New series ends today. Top 5 reasons to apply?

Investing in Sovereign Gold Bonds offers attractive interest rates, tax benefits, convenience, and the inherent value of gold as a timeless asset.

Sovereign Gold Bond Scheme: The new series has been offered for ₹6,263 per gram whereas a ₹50 per gm rebate has been made available for an online applicant. (Photo: Courtesy Senco Gold Ltd website)Premium
Sovereign Gold Bond Scheme: The new series has been offered for 6,263 per gram whereas a 50 per gm rebate has been made available for an online applicant. (Photo: Courtesy Senco Gold Ltd website)

Sovereign Gold Bond Scheme 2023-24: The new scheme of the Sovereign Gold Bond (SGB) 2023-24 which is popularly known as Sovereign Gold Bond 2024 opened on 12th February 2024. The new series of the SGB will remain open till 16th February 2024. This means investors have just one day in hand to apply for the Series IV of SGB. As per the Reserve Bank of India (RBI), the Sovereign Gold Bond Series IV price has been fixed at 6,263 per gram. However, an online applicant can save 50 per gram as the RBI has announced a 50 per gm discount for an online applicant.

Sovereign Gold Bond 2023-24: Should you apply?

Advising investors to apply for the offer, Narinder Wadhwa, National President at CPAI said, "SGB Scheme has proved to be popular among investors who are looking to invest in gold conveniently and securely. The SGB offers various benefits such as an annual interest rate of 2.5% on the invested amount, no storage or security issues, and the option to buy or sell the bond on the stock exchange."

Also Read: Sovereign Gold Bond: Why PPF, bank FD investors should think of investing in SGB too — explained

"For those interested in long-term bullion investments, SGBs are one of the best options, providing half-yearly interest at 2.50% p.a. with the possibility of early redemption after 5 years. SGBs have gained prominence in recent years due to the surge in gold prices, making them an appealing choice for bullion investors," said Amit Goel, Co-Founder and Chief Global Strategist at Pace 360.

Infographic: Courtesy mintgenie
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Infographic: Courtesy mintgenie

On how to maximize one's return from one's investment in the Sovereign Gold Bond Series, Pace 360 expert said, "SGBs are currently trading at a lower price in the secondary market compared to their initial offering in the primary market. Consequently, we strongly advise investors to consider direct investment in SGBs via the secondary market."

Top 5 Benefits of Sovereign Gold Bond

Sugandha Sachdeva, Founder of WealthWave Insights listed out the following 5 benefits that Sovereign Gold Bond investors may expect:

1] Attractive interest rates: One of the primary draws of SGBs is the competitive interest rate they offer. With an annual interest rate of 2.5% on the invested amount, SGBs provide investors with a consistent stream of income in addition to the potential appreciation in gold prices.

2] Tax benefits: Another significant advantage of investing in SGBs is the tax exemption on capital gains if the bonds are held till maturity. This exemption from capital gains tax enhances the overall returns on investment, making SGBs a tax-efficient option for investors.

3] No GST and storage concerns: Unlike physical gold investments, SGBs eliminate the hassle of dealing with GST, purity concerns, and storage issues. Investors can enjoy the benefits of owning gold without worrying about the logistical challenges associated with physical possession.

4] Timeless asset allocation: Gold has long been regarded as a timeless asset, offering a hedge against economic uncertainty and geopolitical tensions. Investing in SGBs allows investors to capitalize on the inherent stability and value of gold as a safe haven asset. Investing in Sovereign Gold Bonds offers a combination of attractive interest rates, tax benefits, convenience, and the inherent value of gold as a timeless asset.

5] Risk mitigation in long-term: With the current global economic uncertainties and the historical performance of gold, allocating a portion of your portfolio to SGBs can prove to be a prudent investment decision for long-term wealth accumulation and risk mitigation.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
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Published: 16 Feb 2024, 10:06 AM IST
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